AirbusMDCFAN
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Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 7:20 am

Link/Source: https://www.yahoo.com/finance/news/boei ... 00354.html


"Not too long ago, Alaska Air (NYSE: ALK) was a model airline, at least from an investor's perspective. In both 2015 and 2016, the company produced outstanding 24% pre-tax margins (excluding special items), outpacing rivals. However, rising costs, growing competition in Seattle, and unit revenue weakness at its Virgin America subsidiary are combining to undermine its profitability. In the current quarter, Alaska will be lucky to break even."
"Alaska Air's management expects results to improve dramatically over the next year or two, as the company begins to unlock merger synergies and the competitive environment hopefully improves. Upgrading to Boeing's (NYSE: BA) newest jet -- the 737 MAX 10 -- could drive further margin improvements for the company."

"Alaska Air has been considering whether to maintain a mixed fleet going forward or to return to an all-Boeing mainline fleet. It had initially planned to make a final decision by the end of 2017, but that timeline appears to have been delayed by the company's recent financial difficulties."

How closely are the Alaska Air hireups looking at the 737MAX10
and which routes that AS currently flies could use the capacity and range of the 737MAX10
 
Passedv1
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 7:42 am

Does anyone really believe that Alaska is considering running their airbusses beyond Lease expiration. The reason they aren’t being more open about it is because of the ongoing negotiations between the various workgroups. This is how Alaska management operates...bad news is never firm until the absolute last possible second. When it finally happens you look back and feel foolish for even thinking they were even considering anything. The only thing they are “considering” is how fast they are going to get rid of them.
 
jetero
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 7:52 am

AirbusMDCFAN wrote:
Link/Source: https://www.yahoo.com/finance/news/boei ... 00354.html


"Not too long ago, Alaska Air (NYSE: ALK) was a model airline, at least from an investor's perspective. In both 2015 and 2016, the company produced outstanding 24% pre-tax margins (excluding special items), outpacing rivals. However, rising costs, growing competition in Seattle, and unit revenue weakness at its Virgin America subsidiary are combining to undermine its profitability. In the current quarter, Alaska will be lucky to break even."
"Alaska Air's management expects results to improve dramatically over the next year or two, as the company begins to unlock merger synergies and the competitive environment hopefully improves. Upgrading to Boeing's (NYSE: BA) newest jet -- the 737 MAX 10 -- could drive further margin improvements for the company."

"Alaska Air has been considering whether to maintain a mixed fleet going forward or to return to an all-Boeing mainline fleet. It had initially planned to make a final decision by the end of 2017, but that timeline appears to have been delayed by the company's recent financial difficulties."

How closely are the Alaska Air hireups looking at the 737MAX10
and which routes that AS currently flies could use the capacity and range of the 737MAX10


Hmmm sounds pretty similar to how WN talked about the 717s.
 
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XAM2175
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 7:55 am

AirbusMDCFAN wrote:
How closely are the Alaska Air hireups looking at the 737MAX10


It's "higher-ups", mate ;)
 
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iahcsr
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 9:33 am

What engines do these have? Maybe UA might have an interest in them.
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BAeRJ100
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 10:08 am

iahcsr wrote:
What engines do these have? Maybe UA might have an interest in them.


Er, wrong thread maybe? What has this got to do with AS?
B737/738/739/744ER/752/753/763/77L/77W/788/789
A320/321/332/333/346/388
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E175/190/CRJ700/900
 
mjoelnir
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 10:10 am

What actually does this article bring new to this discussion? Some speculation of a journalist. Of course is Alaska Airlines thinking about what to do with the A320 family frames and if they will keep them. Typical of a shortsighted financial journalist his view is firmly fixed on the current quarter, he can not even contemplate a whole year.
 
BREECH
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 10:13 am

AirbusMDCFAN wrote:
However, rising costs

WHAT rising costs? Oil is still cheap, right? What possible rising costs could they encounter?

Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?
No friendship, love or respect unite people as much as shared hatred towards something.
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zeke
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 10:29 am

mjoelnir wrote:
Some speculation of a journalist.


I think calling Adam Levine-Weinberg a journalist is giving him credibility not deserved, at best I would call him a blogger.
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keesje
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 10:37 am

The 737-10 would be a great addition to the Alaska fleet. Due to the Virgin merger they ended up with A320, even becoming launching customer for the A321NEO. Now that wouldn't be a big problem, as these aircraft could be replaced overtime by 737s.

Small detail is that it's A321 though. A type all Alaska's competitors are trying to get ASAP to fight each other and has Boeing looking for stopgaps and new programs because sales and backlog tell a story no one can ignore. Is it great strategy to dump the goose with golden eggs for a duck. Air Alaska are scratching their head no they are getting first back from their operations.

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rbavfan
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 11:28 am

AirbusMDCFAN wrote:
Link/Source: https://www.yahoo.com/finance/news/boei ... 00354.html


"Not too long ago, Alaska Air (NYSE: ALK) was a model airline, at least from an investor's perspective. In both 2015 and 2016, the company produced outstanding 24% pre-tax margins (excluding special items), outpacing rivals. However, rising costs, growing competition in Seattle, and unit revenue weakness at its Virgin America subsidiary are combining to undermine its profitability. In the current quarter, Alaska will be lucky to break even."
"Alaska Air's management expects results to improve dramatically over the next year or two, as the company begins to unlock merger synergies and the competitive environment hopefully improves. Upgrading to Boeing's (NYSE: BA) newest jet -- the 737 MAX 10 -- could drive further margin improvements for the company."

"Alaska Air has been considering whether to maintain a mixed fleet going forward or to return to an all-Boeing mainline fleet. It had initially planned to make a final decision by the end of 2017, but that timeline appears to have been delayed by the company's recent financial difficulties."

How closely are the Alaska Air hireups looking at the 737MAX10
and which routes that AS currently flies could use the capacity and range of the 737MAX10



They need to note in the current quarter (the slowest business wise for airlines BTW) most airlines are lucky to break even.
 
rbavfan
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 11:36 am

BAeRJ100 wrote:
iahcsr wrote:
What engines do these have? Maybe UA might have an interest in them.


Er, wrong thread maybe? What has this got to do with AS?


The A320 series that Alaska got as part of the Virgin America takeover use the same engines as United uses. He was hinting that UA could be interested in taking the old Virgin Leases.

I always wondered why so many post on here that the leased planes could be taken up by this airline or that airline. The leasing companies don't say OK you want them well lease them to you. Oh you'll only pay that much, what the hell sure well take that rate.
They will list them to whomever will pay their prices. 1 at a time or more.
 
rbavfan
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 11:39 am

BREECH wrote:
AirbusMDCFAN wrote:
However, rising costs

WHAT rising costs? Oil is still cheap, right? What possible rising costs could they encounter?

Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?


Have you bought gas lately? Oil prices are rising for us and the airlines. Even a small change can have a big cost impact.
 
ShinyAndChrome
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 12:31 pm

rbavfan wrote:
BREECH wrote:
AirbusMDCFAN wrote:
However, rising costs

WHAT rising costs? Oil is still cheap, right? What possible rising costs could they encounter?

Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?


Have you bought gas lately? Oil prices are rising for us and the airlines. Even a small change can have a big cost impact.


Even beyond fuel, the industry as a whole is facing upward wage pressure. AS would be additionally affected by the VX integration and raising VX employees to the AS payscale.
 
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KLASM83
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 2:14 pm

rbavfan wrote:
BAeRJ100 wrote:
iahcsr wrote:
What engines do these have? Maybe UA might have an interest in them.


Er, wrong thread maybe? What has this got to do with AS?


The A320 series that Alaska got as part of the Virgin America takeover use the same engines as United uses. He was hinting that UA could be interested in taking the old Virgin Leases.


In a way, yes the same engine. The AS 32X's have the CFM motors, whereas the UA 32X's have the IAE motors. However, given the fact that UA has quite a lot of CFMs on their 737's, a case could be made (very much stretching it), that introducing that fleet is theoretically possible.

However, it seems enough that UA is getting a bunch of 2nd hand IAE birds from every which way, and that integration has been a bit lengthy. Not too sure UA wants a bunch of odd-engined airplanes right now to add onto that.

That being said, AS could very well just fly the Airbuii until their lease is up, then let the lessor deal with it. A32X's (especially the newer ones that AS has) will not be hard to find a home for these days.
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Channex757
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 2:15 pm

rbavfan wrote:
BAeRJ100 wrote:
iahcsr wrote:
What engines do these have? Maybe UA might have an interest in them.


Er, wrong thread maybe? What has this got to do with AS?


The A320 series that Alaska got as part of the Virgin America takeover use the same engines as United uses. He was hinting that UA could be interested in taking the old Virgin Leases.

I always wondered why so many post on here that the leased planes could be taken up by this airline or that airline. The leasing companies don't say OK you want them well lease them to you. Oh you'll only pay that much, what the hell sure well take that rate.
They will list them to whomever will pay their prices. 1 at a time or more.

Look again.

United uses the IAE engine on their A320 fleet. Virgin are a CFM loyalist, both CFM56 and the newer LEAP on the NEOs. This would not be beneficial to an airline the size of United; to have odd-engined aircraft roaming round their system. It's Delta who run the CFMs on all of theirs to date.
 
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NameOmitted
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 2:43 pm

BREECH wrote:
Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?

They are a good site for aggregating last month's news. If you are curious about a company you know absolutely nothing about, they are a good starting point to your research.
 
wedgetail737
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 3:11 pm

Channex757 wrote:
rbavfan wrote:
BAeRJ100 wrote:

Er, wrong thread maybe? What has this got to do with AS?


The A320 series that Alaska got as part of the Virgin America takeover use the same engines as United uses. He was hinting that UA could be interested in taking the old Virgin Leases.

I always wondered why so many post on here that the leased planes could be taken up by this airline or that airline. The leasing companies don't say OK you want them well lease them to you. Oh you'll only pay that much, what the hell sure well take that rate.
They will list them to whomever will pay their prices. 1 at a time or more.

Look again.

United uses the IAE engine on their A320 fleet. Virgin are a CFM loyalist, both CFM56 and the newer LEAP on the NEOs. This would not be beneficial to an airline the size of United; to have odd-engined aircraft roaming round their system. It's Delta who run the CFMs on all of theirs to date.


I think DL or AA could take them over because their Airbus fleets are compatible, engine-wise. Isn't AS looking to remove the Airbus (except A321 NEO's) because of their lease costs?
 
chrisp390
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 4:00 pm

BREECH wrote:
AirbusMDCFAN wrote:
However, rising costs

WHAT rising costs? Oil is still cheap, right? What possible rising costs could they encounter?

Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?


Best not to trust anything with the word "fool" in its name!
 
Route66
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Tue Feb 13, 2018 5:06 pm

BREECH wrote:
AirbusMDCFAN wrote:
However, rising costs

WHAT rising costs? Oil is still cheap, right? What possible rising costs could they encounter?

Also, this article was written by a website called Motley Fool, a subsidiary of Motley Wealth Management. Anyone ever heard about them?


You haven't? They've been around for many years. Lightweight financial analysis.

But I guess if a person hasn't noticed the rising fuel prices...
 
BREECH
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:16 am

rbavfan wrote:
Have you bought gas lately? Oil prices are rising for us and the airlines. Even a small change can have a big cost impact.

How small a change are we talking about?
No friendship, love or respect unite people as much as shared hatred towards something.
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BREECH
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:18 am

NameOmitted wrote:
They are a good site for aggregating last month's news. If you are curious about a company you know absolutely nothing about, they are a good starting point to your research.

Oh, man, that's so true! You should go and check out Enron website!!!
No friendship, love or respect unite people as much as shared hatred towards something.
Sergey Dovlatov
 
BREECH
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:23 am

Route66 wrote:
But I guess if a person hasn't noticed the rising fuel prices...

And no mortgage, either!!!
No friendship, love or respect unite people as much as shared hatred towards something.
Sergey Dovlatov
 
BREECH
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:25 am

ShinyAndChrome wrote:
Even beyond fuel, the industry as a whole is facing upward wage pressure. AS would be additionally affected by the VX integration and raising VX employees to the AS payscale.

Then what's the fuss all about. Every company experiences a downturn after a merge. And Alaska's hasn't been all that long ago. Employees payscale goes up for everyone, not just Alaska. Are they an LCC? I don't think so.
No friendship, love or respect unite people as much as shared hatred towards something.
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jplatts
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:46 pm

KLASM83 wrote:
rbavfan wrote:
BAeRJ100 wrote:

Er, wrong thread maybe? What has this got to do with AS?


The A320 series that Alaska got as part of the Virgin America takeover use the same engines as United uses. He was hinting that UA could be interested in taking the old Virgin Leases.


In a way, yes the same engine. The AS 32X's have the CFM motors, whereas the UA 32X's have the IAE motors. However, given the fact that UA has quite a lot of CFMs on their 737's, a case could be made (very much stretching it), that introducing that fleet is theoretically possible.

However, it seems enough that UA is getting a bunch of 2nd hand IAE birds from every which way, and that integration has been a bit lengthy. Not too sure UA wants a bunch of odd-engined airplanes right now to add onto that.

That being said, AS could very well just fly the Airbuii until their lease is up, then let the lessor deal with it. A32X's (especially the newer ones that AS has) will not be hard to find a home for these days.


DL will have a mix of CFM-engined A319ceo, A320ceo, and A321ceo planes along with PW1100G-engined A321neo planes.

As a result of the US-HP and AA-US mergers, AA has a mix of CFM-engined A319ceo, A320ceo, and A321ceo planes along with a mix of IAE-engined A319ceo, A320ceo, and A321ceo planes.

If AA and DL can deal with a mix of CFM-engined A32x planes and PW/IAE-engined A32x planes, UA can probably deal with having a mix of IAE-engined A32x planes and CFM-engined A32x planes.

In addition to AA and DL, Allegiant Air and Frontier Airlines both also operate A319 and A320 planes with CFM56 engines.
 
airzona11
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 8:52 pm

keesje wrote:
The 737-10 would be a great addition to the Alaska fleet. Due to the Virgin merger they ended up with A320, even becoming launching customer for the A321NEO. Now that wouldn't be a big problem, as these aircraft could be replaced overtime by 737s.

Small detail is that it's A321 though. A type all Alaska's competitors are trying to get ASAP to fight each other and has Boeing looking for stopgaps and new programs because sales and backlog tell a story no one can ignore. Is it great strategy to dump the goose with golden eggs for a duck. Air Alaska are scratching their head no they are getting first back from their operations.

Image


Doesn't AS state the 739 is better for the longer route and 321 better for the shorter North South trunk routes?
 
hiflyeras
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Re: Boeing's Newest Airplane Could Improve Alaska Air's Fortunes

Wed Feb 14, 2018 10:36 pm

airzona11 wrote:

Doesn't AS state the 739 is better for the longer route and 321 better for the shorter North South trunk routes?


They've stated that the lower CASM 737-900ER's, 900's and 800's could be a better fit for transcon and Hawaii flights with the A320's better for higher frequency north-south West Coast routes. I love the A321 as a passenger and would love to see them buy more of them but I just don't see it happening. We haven't seen any moves yet to make route changes based on a/c type but it's on the way.

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